Buying A Home: Credit Score

Getting your credit score is the first piece of information you will need in order to figure out where you stand on buying a home. It will indicate to the lenders your credit worthiness and that translates into how much risk they are taking in lending you money. The better the credit score, the less risk and, therefore, the lower interest rate they will offer you. The opposite is also true. The lower your credit score is means the higher risk for the lending company and, therefore,  you will be placed at a higher interest rate to borrow money. You are able to utilize several websites such as www.creditKarma.com that will give you an idea as to what your credit score is, so you can start planning accordingly. When you find a lender to get pre-approved for your loan, they will run your credit and you can ask them for the credit report. This report usually costs $20 or so. Look over the report and make sure there is nothing on your credit report that should not be there. If you find a error, contact the credit bureaus to dispute the erroneous information and be sure to follow up on its removal. Vigilance works best when dealing with your credit score.